New York City minority business owners sue Mamdani in bid to stop city-run grocery store plan

Chicago – August 24, 2026

New York City grocers and bodega owners are suing Mayor Zohran Mamdani and the city in an effort to block his plan to open five city-run grocery stores, arguing the program would create unfair competition for small, minority-owned businesses. 

The Multicultural Business Coalition, which represents hundreds of grocery stores and bodegas, filed a class-action lawsuit in Manhattan on Monday. The group says the city-backed stores could offer groceries at discounts of around 30% while benefiting from public subsidies and rent-free facilities—advantages private businesses cannot easily match. 

Mamdani has defended the $70 million initiative, saying the stores are designed to lower food costs for New Yorkers amid rising grocery prices. The city plans to open one store in each borough, with the first expected in the Bronx in 2027. 

The lawsuit now puts one of Mamdani’s signature affordability policies before the courts, setting up a broader debate over whether government-run businesses can lower consumer prices without hurting the small businesses already serving local communities.